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CSG and Fuji Xerox enter court over terminated agreement

Fuji Xerox has issued court proceedings against CSG to determine if the termination was valid

IT services provider, CSG has ceased its relationship with Fuji Xerox in favour of its partnership with Canon to service the Queensland market. Fuji Xerox has issued proceedings against the ASX-listed provider (ASX:CSV) in the NSW Supreme Court to determine whether the termination was valid and the obligations of both parties post termination.

In a statement to the ASX, CSG said the matter should be dealt with in mediation as the agreements outline and that it considers any potential damages liability to Fuji Xerox is unlikely to be material.

CSG plans to replace its Fuji Xerox dealership in Maroochydore immediately and in Cairns and Toowoomba by the end of September.

In addition, CSG will also become a Develop dealer in Maroochydore. Develop is an international brand manufactured by Konica Minolta and distributed in Australia by Imagetec Solutions.

CSG Managing Director, Denis Mackenzie said the extended agreement would significantly increase the number of machines and customers it would service.

“CSG will continue to service all non-Canon customer machines in Brisbane and Maroochydore under the terms of the many thousands of service agreements we have in place,” Mackenzie said.

In May, CSG announced its $31 million Canon agreement to service Sydney, Melbourne, Canberra, Adelaide and Perth with sub-contractor rights over 10,500 multifunction devices.

Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.

More about: Canon, CSG, Fuji, Fuji Xerox, Konica, Konica Minolta, Minolta, Minolta-QMS, Xerox
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Comments

1

Steve

Sat 25/09/2010 - 03:38

Apparently all 3 parties Canon, Fuji Xerox and CSG (CSV) have been in the NSW Supreme Court this week disputing Injunctions!

2

Anon

Thu 25/11/2010 - 11:54

I am confused - CSG have stated "The financial impact could cost the integrator $3 million to $4 million in loss of profit before tax", yet back in August CSG stated to the ASX that "...the matter should be dealt with in mediation as the agreements outline and that it considers any potential damages liability to Fuji Xerox is unlikely to be material."

So...only 3 months ago a deal that would have no material impact to FX could actually be worth $4million!

The Gentleman who oversaw the Canon - CSG deal under the watchful eye of the COO has also jumped ship.....

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